Credit Repair Advice and Tips

First, you need to figure out how youre going to eliminate those credit card debt, unsecured loans or secured loans. Are you going to pay back all those loans? Are you thinking about credit counseling or debt elimination? What about bankruptcy? Whatever the solution you have in mind is, the first step in credit repair is dealing with the problem-the debt.

Second, this is the stage you get to where you have rotten credit but no debt. This is good news, even though your credit is shot because of bankruptcy, late payments, and debt elimination, etc. you are rid of the burdensome debt. So now, you can focus solely on credit repair.

Tip#1 Open up a $500-1000 secured credit line with a bank where you use $500-1000 cash in a savings account as collateral. It is secured because if you dont pay that credit card or loan back theyll seize your deposit. That deposit is tied up and you cant withdraw or spend it while you have that loan out. As you make consistent and on time payments your credit improves.

Tip#2 Pay your rent, utility bills, car payment and/or mortgage payments on time. This will help your credit also. You dont want any additional negative things being reported to the credit reporting bureaus.

Tip#3 Clean up your credit report. There are some companies and law firms that can help you clean up your credit report but disputing the entries in your credit report. Those firms can help you remove some of the negative entries and improve your credit score. It doesnt cost that much, the cost range from $50-100 a month plus credit report fee for 6-8 months. This process isnt instant and takes a few months to see improvements to your credit report.

Tip#4 Get a new credit card but dont charge it up to the maximum credit limit. Start out with a $500 credit limit unsecured credit card if you can get approved for one. Charge $100-200 a month and pay it back in full every month on time. If you cant pay the whole amount back, always pay above the minimum payment due.